Bekaert announces the sale of its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela

28 Feb 2025 07:00 CET

Issuer

BEKAERT S.A.

Bekaert announces the sale of its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela

Bekaert today announces it has reached an agreement on the sale of its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela to Grupo AG. This transaction values the underlying entities at a consolidated enterprise value of approximately US$ 73 million and is expected to result in net proceeds for Bekaert of approximately US$ 37 million. The transaction is expected to close in the third quarter of 2025, subject to applicable regulatory approvals and customary closing conditions.

Rationale
Bekaert’s strategy in recent years, has been to transform its business portfolio by reducing the Group’s exposure to more commoditized and volatile markets, while increasing its presence in faster growing markets, which typically offer higher profit margins and higher returns on capital. Following the divestment of its Steel Wire Solutions business in Chile and Peru in 2023, Bekaert now takes a further step in its portfolio transformation by exiting the businesses in Costa Rica, Ecuador and Venezuela to strengthen its focus on target segments, while securing a long-term future for the customers and employees of the divested entities.

Disposal entities
The transaction includes the production and distribution facilities of the Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela. These facilities manufacture and sell steel wire products primarily for construction, agricultural fencing, mining, and industrial applications. The transaction concerns the sale of the shares held by Bekaert in BIA Alambres Costa Rica S.A. in Costa Rica, Ideal Alambrec S.A. in Ecuador, and Vicson S.A. in Venezuela, along with their subsidiaries in each of those countries.

Financial Impact
The activities subject to the transaction generated approximately US$ 137 million in consolidated revenue in 2024. The proceeds from the sale will further strengthen Bekaert’s balance sheet and support its commitment to shareholder returns and investment plans for growth.

François Desné, Divisional CEO of Bekaert’s Steel Wire Solutions business unit, commented: “The proposed transaction unlocks the value of these businesses for Bekaert. It marks another significant milestone in our portfolio transformation, further strengthening the Steel Wire Solutions business with a more competitive and resilient market position. We have achieved numerous successes together with our longstanding partners. However, over time the characteristics of the markets in these three countries no longer align with our strategy. We are confident that this transition will ensure continuity for the local teams and customers under the new ownership when the sale closes.”

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